As LUNC loses more than $100 million in a single week, Terra Classic loses its allure in a bear market
The original chain of the defunct Terra (LUNA) ecosystem, Terra Classic (LUNC), has lost some of its momenta during the last week, which saw the asset recover despite the overall cryptocurrency market trading in the negative territory. LUNC is seeing a continuous capital outflow as investors wait to see if the token will continue to rise after rising since approximately August.
LUNC/USD 4-hour chart | Source: TradingView
Terra Classic loses bear market charm as over $100 million outflows from LUNC in a week
For example, as of October 25, LUNC’s market capitalization was $1.53 billion, down from the $1.63 billion recorded on October 18 by $100 million. The selling pressure in LUNC had a role in the token’s value beginning to trend downward during the past seven days. By publication, the token’s value had decreased by almost 11% in a week to $0.00023.
After seeing weeks of consistent growth fueled by various initiatives, including community short squeezes, interest in LUNC has drastically decreased. One may claim that after investors in the assets got their profit, LUNC is now feeling the consequences of the overall market.
Additionally, the ongoing conflict between South Korean authorities and Terra founder Do Kwon has coincided with the selling pressure from LUNC. Authorities claim that Kwon, who is wanted on the run, is responsible for the fall since the founder has an arrest warrant.
However, the decline is not unexpected given that the May collapse damaged the Terra ecosystem’s chances of ever achieving its total capacity. However, the token still has a sizable amount of wealth under its control, and some community members believe Terra can still be salvaged.
Notably, despite being expected to fail, the LUNC managed to keep investors interested because to variables including an endorsement from top cryptocurrency exchanges. The developer community also put in place several procedures simultaneously, such as the burn mechanism for managing supplies.
It is unclear if LUNC will have the strength to climb again, given the decreased usefulness, particularly if the market has a bull run. Additionally, the community attempts to adopt LUNC’s strategy after meme currencies like Dogecoin (DOGE) are put to the test.
Overall, Terra Classic’s prospects are bleak, but the community is optimistic in light of prospective drivers like the LUNC tax structure, the de re-peg plan, and the active neighborhood.
- Terra Classic (LUNC) Community’s Objective To Revive The Trust Was Met With Strong Criticism
- Terra’s Do Kwon Denies That South Korean Authorities Have Frozen His Crypto Assets